Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, Mizuho (NYSE:MFG) Securities adjusted its outlook on Harmony Biosciences Holdings Inc. (NASDAQ:HRMY), raising the price target on the stock to $48.00 from the previous $44.00, while maintaining an Outperform rating. Currently trading at $33.39, the stock shows significant upside potential according to InvestingPro analysis, which indicates the company is undervalued. The adjustment follows Harmony (JO:HARJ) Biosciences’ first-quarter performance, which featured a revenue beat from its lead asset Wakix and no negative surprises in its pipeline.
Harmony Biosciences reported strong first-quarter earnings, buoyed by the performance of Wakix, which is on track to potentially become a $1 billion product. The company demonstrated impressive financial health with a 78.34% gross profit margin and 20.62% revenue growth over the last twelve months. The company’s robust pipeline includes six programs expected to enter Phase 3 clinical trials by the end of 2025. Analysts at Mizuho expressed satisfaction with the company’s financial results and the steady progress of Wakix. InvestingPro data reveals 8 additional key insights about HRMY’s financial strength, available to subscribers.
The upcoming events for Harmony Biosciences are considered significant for the company’s future growth. Analysts highlighted two key data events: the presentation of full preclinical efficacy and safety data for BP1.15205, Harmony’s orexin 2 receptor agonist, at the SLEEP 2025 conference in June, and the announcement of top-line Phase 3 RECONNECT study data for ZYN-002 in patients with Fragile X Syndrome, expected in the third quarter of 2025.
The anticipation of positive clinical data outcomes, especially for ZYN-002, has the potential to meaningfully impact Harmony Biosciences’ stock value. Mizuho’s analysts view Harmony Biosciences with a biotech-like perspective due to its strong focus on developing its pipeline and the potential for significant advancements in its clinical programs.
In other recent news, Harmony Biosciences reported impressive financial results for the first quarter of 2025, significantly exceeding earnings expectations. The company’s earnings per share (EPS) reached $1.03, surpassing the forecasted $0.61, while net revenues amounted to $184.7 million, reflecting a 20% year-over-year growth. The company also maintains a strong cash reserve of $610.2 million, highlighting its robust financial position. Additionally, Harmony Biosciences projects full-year net revenues between $820 million and $860 million, with the expectation of continued growth driven by its expanding product pipeline. The company’s flagship treatment, Wakix, remains a key growth driver in the narcolepsy market. In the pipeline, Harmony is on track for a Phase III trial of ZYN-two for Fragile X syndrome, with top-line data expected in the third quarter. Analyst firms have not reported any recent upgrades or downgrades for Harmony Biosciences, but the company’s strong financial performance and strategic initiatives continue to reinforce its market position.
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